Page 4 - AsianOil Week 18 2022

AsianOil COMMENTARY AsianOil

India seen increasingly

pivoting to Russia

India appears to be increasingly turning to Russia to procure

oil, even as other countries step up sanctions against Moscow

POLICY INDIA appears to be increasingly pivoting Increased imports
towards Russia for oil supplies – at least in the The Asian country’s oil imports have been on the
WHAT: shorter term as it seeks to capitalise on dis- rise in the wake of the war in Ukraine. Accord-
India is increasingly counted crude being offered by Moscow. In ing to recently released data, India’s oil imports
looking to Russia to recent days, it emerged that Indian refiners are between April 2021 and March 2022 were up 8%
procure oil, in contrast reportedly in talks over a six-month deal to year on year. And with international crude prices
to Western countries that import oil from Russia. And there is a possibil- at multi-year highs, obtaining discounted oil
are shunning Russian ity that the pivot could prove longer-lasting, as from Russia has become an attractive prospect,
energy. according to separate reports, New Delhi has despite the additional challenges trading with
asked state-owned oil companies to consider Moscow currently poses. Indeed, India is esti-
WHY: buying the stake in Russia’s Rosneft that is being mated to have already bought more than twice
Russian oil is selling at abandoned by BP. as much crude from Russia in the two months as
a discount and Indian This comes as Russia’s war in Ukraine, which it did in the whole of 2021.
refiners are keen to started in February, shows no sign of coming This week, Reuters cited multiple sources
capitalise on this against to an end. In response, numerous countries, familiar with the matter as saying that Indian
the backdrop of high mostly in the West, have imposed sanctions refiners were in talks over a potential oil deal,
crude prices. on Moscow and have sought to lessen their which could see them importing millions of
dependence on oil and gas imports from Russia. barrels of crude from Russia. According to the
WHAT NEXT: But India has sought to maintain its neutrality, sources, Indian Oil Corp. (IOC) – the country’s
New Delhi is reported to despite pressure from the West to take a tougher largest refiner – Bharat Petroleum Corporation
have asked state-owned stance. Ltd (BPCL) and Hindustan Petroleum Corpo-
oil companies to consider Among the reasons for India’s position is ration Ltd (HPCL) are negotiating the deal with
buying BP’s stake in the fact Russia is its largest arms supplier and Russia’s Rosneft.
Russia’s Rosneft. it does not want to strain their relations. In IOC is reported to be negotiating to import
addition, the country is seeking to capitalise on 6mn barrels per month of oil, with an option to
the availability of discounted Russian crude at buy a further 3mn barrels, while BPCL is in talks
a time when crude prices remain above $100 to import 4mn barrels per month and HPCL is
per barrel. And Moscow appears to be happy seeking 3mn barrels. They are said to be seek-
to offer cheap crude to India under the current ing supply from June. The sources added that
circumstances. Rosneft was also in similar talks with Chinese

P4 www. NEWSBASE .com Week 18 06•May•2022